Startup Valuation Calculator
Calculate startup valuations using multiple methods for fundraising and negotiations.
How the Startup Valuation Calculator works
Apply multiple valuation approaches including comparables, scorecard, and VC methods to determine fair startup value.
Startup valuation determines how much equity you give up when raising money, making it critical for fundraising success.
How it works
Tutorial
Startup valuation drives every fundraising conversation, determining how much equity founders must give up to raise capital. Early startups require specialized approaches that balance data with factors like team quality, market size, and competitive positioning. Using multiple valuation methods and finding a reasonable range creates the strongest negotiating position.
Use the calculator above for multi-method startup valuation, or follow the steps below to value your startup using the Scorecard Method.
The Formula
| Method | Best For | Core Formula |
|---|---|---|
| Comparables | Companies with similar peers | Peer Valuation × Adjustment Factors |
| Scorecard | Pre-revenue to early revenue | Average Valuation × Weighted Scores |
| VC Method | High-growth potential | Exit Value ÷ ROI Target × Retention |
| DCF | Revenue-stage companies | Present Value of Projected Cash Flows |
Step-by-Step Calculation
Let’s value a startup using the Scorecard Method.
Step 1: Determine Regional Baseline
Start with average pre-money for your stage and region:
| Region | Stage | Average Pre-Money |
|---|---|---|
| San Francisco | Seed | $4,000,000 |
| New York | Seed | $3,500,000 |
| Austin (Example) | Seed | $2,500,000 |
Baseline:Starting point is$2,500,000
Step 2: Score Management Team (30% weight)
Evaluate team quality:
| Factor | Weight | Score vs Average | Weighted Multiplier |
|---|---|---|---|
| Team Strength | 30% | 125% (strong) | 1.075 |
Reasoning:Experienced team with one previous exit. Calculation: 1 + (0.30 × 0.25) =1.075
Step 3: Score Market Opportunity (25% weight)
Evaluate market size:
| Factor | Weight | Score vs Average | Weighted Multiplier |
|---|---|---|---|
| Market Opportunity | 25% | 115% (above average) | 1.0375 |
Reasoning:Large market but competitive. Calculation: 1 + (0.25 × 0.15) =1.0375
Step 4: Score Product/Technology (15% weight)
Evaluate product differentiation:
| Factor | Weight | Score vs Average | Weighted Multiplier |
|---|---|---|---|
| Product/Technology | 15% | 110% (slightly above) | 1.015 |
Reasoning:Good product but not revolutionary. Calculation: 1 + (0.15 × 0.10) =1.015
Step 5: Score Competition (10% weight)
Evaluate competitive environment:
| Factor | Weight | Score vs Average | Weighted Multiplier |
|---|---|---|---|
| Competition | 10% | 95% (challenging) | 0.995 |
Reasoning:Crowded market. Calculation: 1 + (0.10 × -0.05) =0.995
Step 6: Score Marketing/Sales (10% weight)
Evaluate go-to-market strategy:
| Factor | Weight | Score vs Average | Weighted Multiplier |
|---|---|---|---|
| Marketing/Sales | 10% | 105% (solid) | 1.005 |
Reasoning:Clear channel strategy. Calculation: 1 + (0.10 × 0.05) =1.005
Step 7: Score Additional Factors
Evaluate remaining factors:
| Factor | Weight | Score | Multiplier |
|---|---|---|---|
| Need for Investment | 5% | 100% | 1.000 |
| Other Factors | 5% | 108% | 1.004 |
Calculations:1 + (0.05 × 0) = 1.000; 1 + (0.05 × 0.08) =1.004
Step 8: Calculate Combined Multiplier
Multiply all weighted factors:
| Factor | Multiplier |
|---|---|
| Team | 1.075 |
| Market | 1.0375 |
| Product | 1.015 |
| Competition | 0.995 |
| Marketing | 1.005 |
| Funding Need | 1.000 |
| Other | 1.004 |
| Combined Multiplier | 1.138 |
Calculation:1.075 × 1.0375 × 1.015 × 0.995 × 1.005 × 1.000 × 1.004 =1.138
Step 9: Calculate Final Valuation
Apply the combined multiplier to baseline:
| Component | Value |
|---|---|
| Regional Baseline | $2,500,000 |
| Combined Multiplier | × 1.138 |
| Pre-Money Valuation | $2,845,000 |
Calculation:$2,500,000 × 1.138 =$2,845,000
Step 10: Create Negotiation Range
Round to negotiable number:
| Precision | Value |
|---|---|
| Calculated | $2,845,000 |
| Negotiation Value | $2.85M – $3.0M |
Final Answer:The startup valuation is approximately$2.85-3.0 millionpre-money
What This Means
A $3M pre-money valuation positions this Austin seed startup at a 20% premium to regional average, justified by strong team and good market opportunity. For a $750K raise, this results in 20% dilution ($3M + $750K = $3.75M post-money).
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